(TNS)—Federal Housing Administration-backed home equity conversion mortgages, or HECMs, are accessible to homeowners 62 and older. (TNS)—Federal Housing Administration-backed home equity conversion mortgages, or HECMs, are accessible to homeowners 62 and older. These reverse mortgage loans allow older Americans to tap into a portion of their equity to help supplement retirement income.
With a reverse mortgage loan, homeowners aren’t required to make monthly mortgage payments, but do need to continue paying for property taxes, homeowners insurance, home maintenance costs and otherwise comply with the terms of the loan. Just like a conventional home mortgage loan, if the homeowner defaults on the loan, or doesn’t comply with the terms, the borrower may face foreclosure.
